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I Made My First Offer Today In 4 Years.


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Hmm - a house is only worth what someone is able and willing to pay for it, and also what a (non-distressed) seller is willing to sell it for. We were in exactly the same position in 1992 - and we really wanted to move cos I was commuting a long way (company gone bust, needed a job quick). We were moving to a more expensive area - and we had a low offer, which I'm sure the person thought that was a right amount, however - we rejected and waited. The person came back with a different estate agent and offered the same again - to be rejected again. We sold a few weeks later at 10% more that the low offer. The thing is - its a market and you take your chances. We still sold at a loss, and had to move on - that's life. However there are two sides to every story and for the people that have over committed, maybe through greed, maybe coz they just wanted a home - but I don't enjoy rejoicing in peoples misery!

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We sold to rent nearly a year ago. Absolutely loved our old home but it was a mile from the next village where kids schools are and most of their friends.

We wanted them to grow up within walking distance of both friends and school especially when they ate a bit older because although only a mile, the mile was along a single straight stretch where cars regularly get up to 90 mph plus and we didn't want them trapped in auto-reliance.

Anyhow, waited till now( I'm happy to wait much longer) but missus understandably wants security. Lovely landlords we have now bit you never know and big houses ( we have three kids) aren't always available for rent in village.

Most houses on Market are either too small or extravagantly opulent ( massive period buildings on half acre plots) so nothing in our mid/upper Market.

There is one private estate where we have many friends and although most houses ate small, about several four or give beds have appeared on Market in last two months.

The problem ... Massive [email protected]@@in delusion. Estate agent put his own place on first ( zoopla estimate 320, asking price 420) much nicer and larger house next door to his went for 405 in late 2007!

Only one house on while estate has sold in last 18 months. That is on corner plot with massive garden and is biggest five bedder on estate. It went for 405 last year.

Nearly every house is marketed with reference to asking price of first one. All over 400 none worth more than 350 ( and a lot worth less than 320) .

We saw one which backed onto friends and despite being up for least amount, was actually our favourite. On for 400, we offered 350. To be fair estate agent appeared amenable and seemed to accept my argument re: above.

Came back with message that vendor may meet me somewhere in middle. "middle of what? ". The asking price is totally arbitary, if it would have been on for 450 would middle be 400 yet middle is now 375. surely a house is worth what it's worth.

Last week agent came back asking if I'd reconsidered. I told him I had, given the recent economic turmoil and Market crashes I'm now at 340 and falling.

I wasn't cheeky or flippant, I merely pointed out why I'd reached these conclusions. Agent knows I'm the only buyer in village in this segment and knows I like the house. I think he'll have to do his work on this one.

Sad thing is, if vendor dropped his price, he'd be free of this risk, a few quid in pocket, he could move on ( it's a divorce) agent would have commission and others might take note and drop prices leading to local entry of other buyers now in range.

But oh no! Zero rates are stimulating the economy aren't they sir merv?

Sorry for lengthy rant

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I made my first offer on a house today in 4 years.

House last sold in 2004 for £400K

Land registry now at 2004 levels.

We offered £400K, and that's over-priced !!!

Offer rejected.

Asking price.....£600K.

Vendor....Annoyed.

Me, laughing.

:lol::lol::lol::lol:

Not again: how many ridiculous low ball offer threads like this are we going to see?

The look on the faces of the vendors would reflect the thought "Who was that childish idiot wasting our time", if such a look was possible. Annoyed? Bemused more like.

If you are 10-20% off asking, then your offer is credible and perhaps you could bid up from there. Offering 33% under makes them think you're a chancer or a front for a company specialising in mopping up repossessions.

I don't think even in Financial Planner's wettest of wet dreams you could pick much up in the (ex-newbuild flats) for that kind of discount.

Edit: typo

Edited by aussieboy
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If you are 10-20% off asking, then your offer is credible and perhaps you could bid up from there.

The gap between Rightmove asking prices and Nationwide/Halifax selling prices is not 10%. Since when were asking prices 30-40% above selling prices credible? It's vendors who need to get real, not buyers.

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The gap between Rightmove asking prices and Nationwide/Halifax selling prices is not 10%. Since when were asking prices 30-40% above selling prices credible? It's vendors who need to get real, not buyers.

Yes but the OP still doesn't have the house he wanted unless he was just baiting the vendor which is simply childish.

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- central aircon with a good multisplit system, not a cheap one from B&Q (becoming vital in the SE, especially if you want to sell to 'the new money' afterwards)

- large live-in kitchen with ovens, steam ovens, combi microwaves etc, induction hobs, quookers, built in quality dishwashers etc

- separate utility rooms

underfloor heating to at least the ground floor and all bathrooms

- some form of media hub

- a proper hard and soft landscaped garden with proper outdoor dining/living

- walk in monsoon showers, large baths and clean modern lines

- proper outdoor lighting and power

most developers don't do this ......

Apart from anything else because it's physically difficult to fit all this into even quite a large house (well, lets just say anything except the top < 0.5%), never mind the typical 'executive slave hut'.

Yet another interweb fantasist/boaster post.

Meanwhile, back in the real world......

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Not again: how many ridiculous low ball offer threads like this are we going to see?

The look on the faces of the vendors would reflect the thought "Who was that childish idiot wasting our time", if such a look was possible. Annoyed? Bemused more like.

If you are 10-20% off asking, then your offer is credible and perhaps you could bid up from there. Offering 33% under makes them think you're a chancer or a front for a company specialising in mopping up repossessions.

I don't think even in Financial Planner's wettest of wet dreams you could pick much up in the (ex-newbuild flats) for that kind of discount.

Edit: typo

You seem to be caught in the trap of "asking prices are realistic". They are not. They E.A. didnt even blink when I put my offer in. The said they were happy to put forward any offer. If anything it softens up the vendors for them to ask them to reduce their asking price.

Offering the market value is sensible and correct especially when [previous sales prices show your offer is realistic and you are in a position to proceed. Asking 200K more for a house worth 400K makes you look like a greedy chancing con man.

wake up and smell the coffee.

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He only wanted it at the price he offered.

Quite right. I'd happily buy the house but at the price I offered. If I bought it at the price they asked for I wouldn't be able to sleep at night. I think i'd be in for a massive loss in the future, we would be stuck in it. It would be financial suicide.

I've had to bail out the banks, through my taxes, I aint bailing out anyone else.

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Quite right. I'd happily buy the house but at the price I offered. If I bought it at the price they asked for I wouldn't be able to sleep at night. I think i'd be in for a massive loss in the future, we would be stuck in it. It would be financial suicide.

I've had to bail out the banks, through my taxes, I aint bailing out anyone else.

Amen to that. When I discussed it with another vendor who has similar but unsuitable for us house and why I thought his and other were asking too much, his reponse was, "but no-one wants to sell much below asking as they feel they are losing money"

I pointed out that if I paid £80k more than I thought it was worth then I was handing myu kids futures to someone else for no reason, and indeed if I were correct I would have genuinely lost money rather then feeling like I had.

I stated that the whole world is conditioned to asking price mentality and even price there house off frames of reference based on an asking price. This is fine but should be hastily adjusted if time on market tells you this is not achievable.

Instead, the notion that price can only ever go up in the short, medium, and long term means they will have to wait (probably decades in some cases) before prices reach there asking price.

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Amen to that. When I discussed it with another vendor who has similar but unsuitable for us house and why I thought his and other were asking too much, his reponse was, "but no-one wants to sell much below asking as they feel they are losing money"

I pointed out that if I paid £80k more than I thought it was worth then I was handing myu kids futures to someone else for no reason, and indeed if I were correct I would have genuinely lost money rather then feeling like I had.

I stated that the whole world is conditioned to asking price mentality and even price there house off frames of reference based on an asking price. This is fine but should be hastily adjusted if time on market tells you this is not achievable.

Instead, the notion that price can only ever go up in the short, medium, and long term means they will have to wait (probably decades in some cases) before prices reach there asking price.

apologies for my rubbish spelling (again). Some people should check THEIR posts when typing

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I stated that the whole world is conditioned to asking price mentality and even price there house off frames of reference based on an asking price. This is fine but should be hastily adjusted if time on market tells you this is not achievable.

The countess, suffers from this very same problem. She thinks the asking price is what we should pay. I driver her crazy with facts and figures but still the non-factual asking price seems to convince her otherwise.

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The gap between Rightmove asking prices and Nationwide/Halifax selling prices is not 10%. Since when were asking prices 30-40% above selling prices credible? It's vendors who need to get real, not buyers.

I was watching an old Location Location last night (well not that old I think it was shot during the downturn). Well the clients had the nerve to tell Kirsty to offer 400K on a 440K asking. Well Kirsty was having a nervous breakdown about this...they don't want a house, they are messing about putting in such a derisory offer. But actually that was 91% to asking against an average 89% to seal a deal...so what the hell is Kirsty's problem.

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I was watching an old Location Location last night (well not that old I think it was shot during the downturn). Well the clients had the nerve to tell Kirsty to offer 400K on a 440K asking. Well Kirsty was having a nervous breakdown about this...they don't want a house, they are messing about putting in such a derisory offer. But actually that was 91% to asking against an average 89% to seal a deal...so what the hell is Kirsty's problem.

It's yet another symptom of houses being ridiculously overpriced. If houses were priced sensibly relative to incomes (e.g. 3x single income), then nobody would care so much about 5-10% this way or that as it would only represent two or three months' gross income. Instead we have houses at more like 10-12x single income, for which a 10% difference in price could easily represent years of work. No wonder the market is so tense, it's like playing poker with your next year's salary on the table.

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Yes but the OP still doesn't have the house he wanted unless he was just baiting the vendor which is simply childish.

This is true, we did want to buy the house but as it stood the offer was fair, I can rent for the next 15+ years for extra 200K they were asking, I'm happy to rent under those circumstance. There is a limit to which any sensible, literate ( semi-) intelligent person is willing to pay for a house.

Also, I still have

a) My house buying fund

B) A chance to buy the house at the price I want

c) My self respect.

d) A chance to buy a different house

Also, I've injected a bit of reality into the estate agent and vendors mind.

The wrose thing that could have happened to my offer was it was accept. if it had been we would have bought the house and lived in it happily for the next 15 years counting how much money we have lost.

At the end of the day, it's only a house...there are millions of them in the UK, another one will come along, it';s not worth getting into financial difficulties to put a roof over your head.

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This thread has reminded me of a conversation on Mumsnet just over a year ago about 'silly offers'.

Quite a few people were of the opinion that if you offered as low as 20% below asking you would annoy both vendor and agent, look like an idiot, never be taken seriously by an estate agent ever again (because that agent would tell their mates) and just generally be doomed forever.

Now 20% below is a fairly normal starting point.

Meanwhile, as asking prices have risen and selling prices have fallen, the asking prices are typically a high percentage above reality and you can talk confidently of them as 'silly prices', knowing because you have the evidence of sold prices in front of you (rather than just a theory about where the market ought to be) that it is the seller who is deluded, not the buyer, and by offering low you are just trying to speed up the process of their realising it.

(edit: 'selling' prices changed to 'asking' prices in 1st line of last para)

Edited by FloraPoste
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Not again: how many ridiculous low ball offer threads like this are we going to see?

The look on the faces of the vendors would reflect the thought "Who was that childish idiot wasting our time", if such a look was possible. Annoyed? Bemused more like.

If you are 10-20% off asking, then your offer is credible and perhaps you could bid up from there. Offering 33% under makes them think you're a chancer or a front for a company specialising in mopping up repossessions.

I don't think even in Financial Planner's wettest of wet dreams you could pick much up in the (ex-newbuild flats) for that kind of discount.

Edit: typo

Your comments above are typical of people in the west, you worry about how you will be perceived over trying to get the lowest price. Remember the golden rule of negotiation, if your first offer doesn't embarrass you, it’s too high! ;)

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Your comments above are typical of people in the west, you worry about how you will be perceived over trying to get the lowest price. Remember the golden rule of negotiation, if your first offer doesn't embarrass you, it’s too high! ;)

I wasn't at all embarrassed. I was trying to buy a house for the going rate, which is way over-valued anyway.

The vendor and the agent should be embarrassed for trying to steal from some poor unsuspecting soul, in fact, they should be ashamed.

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I made my first offer on a house today in 4 years.

House last sold in 2004 for £400K

Land registry now at 2004 levels.

We offered £400K, and that's over-priced !!!

Offer rejected.

Asking price.....£600K.

Vendor....Annoyed.

Me, laughing.

:lol::lol::lol::lol:

Let her fester for 6 months then offer her 380k :lol:

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I wasn't at all embarrassed. I was trying to buy a house for the going rate, which is way over-valued anyway.

The vendor and the agent should be embarrassed for trying to steal from some poor unsuspecting soul, in fact, they should be ashamed.

Carter Jonas still sends me specs of houses after I made an offer on one last year. After doing some digging on Zoopla and looking at how much money the vendors paid for these houses (they seem to want to triple their money having bought just before peak and done a bit of renovation or double it having done nothing) I am starting to find the whole thing quite insulting - I feel like ringing them up and going 'Oi, are you trying to tell me I'm stupid or something?' :D

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On a slightly different note I am viewing the first house for six months at 4.15 this afternoon. Just hope we don't get tempted. Buying a house still looks like a great way to lose money only midway through a potential decade long correction. Though -30% real to date would not be the worst time to buy, but -50% real later would be better.

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Carter Jonas still sends me specs of houses after I made an offer on one last year. After doing some digging on Zoopla and looking at how much money the vendors paid for these houses (they seem to want to triple their money having bought just before peak and done a bit of renovation or double it having done nothing) I am starting to find the whole thing quite insulting - I feel like ringing them up and going 'Oi, are you trying to tell me I'm stupid or something?' :D

Some people have been saying zoopla is useless. The thing is that it's not very accurate at the moment, but give it 30 years and it will be a great valuation tool. You have to do your research,

One point I made to the E.A. was that I was basing my offer on the land registry sold prices ( for that house and others ) and the current land registry values. I also said if the vendor could prove that had added any extra value to the house then I'd reconsider my offer, e.g. if thay had put an extension on adding 1000 square feet to the property then that would might explain the high asking price. All I was told was they had spend £X on it, when I asked if they could provide receipts the agent didnt think so.

All I want is a house at a fair price.

If you have to over-pay then you might as well rent.

Edited by TheCountOfNowhere
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There are 6 houses in the same locale, all at silly asking prices...all over-valued.

I would like to have seen the look on the vendors face.

I would buy the property at the offered price, maybe even 25K more, but the vendor think they can get near the full asking price.....

Six houses you feel entitled to but you can't afford any of them apparently. How disappointing for you.

I'm afraid the agents phone call would just have gone

"Mr Chancer who viewed last week put in a silly offer of x pounds which we turned down but have to pass on to you."

I doubt the vendor would have cared much either way apart from the inconvenience of having to offer a viewing to someone who wasn't able to proceed.

Why even bother to view places so far outside your budget? You're just wasting your own time and annoying agents who you may need onside if you ever do need to buy somewhere.

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Six houses you feel entitled to but you can't afford any of them apparently. How disappointing for you.

I'm afraid the agents phone call would just have gone

"Mr Chancer who viewed last week put in a silly offer of x pounds which we turned down but have to pass on to you."

I doubt the vendor would have cared much either way apart from the inconvenience of having to offer a viewing to someone who wasn't able to proceed.

Why even bother to view places so far outside your budget? You're just wasting your own time and annoying agents who you may need onside if you ever do need to buy somewhere.

The more of these offers they get - the more they will realise their own 'valuation' is completely unrealistic.

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